The Saudi Dairy and Food Products Company, SADAFCO, achieved profits in the second quarter of this year, amounting to about 38 million riyals, a decline of 46% compared to the profits of the same quarter of 2020, when it recorded 70.5 million riyals.
According to Arabiya Net, the company said in a statement that since the exceptional conditions witnessed in the first quarter of last year began to fade, revenues and profits were lower for this quarter compared to the year past.
And she added that it was also affected by other factors, namely, the closure of schools for a long time, the decline in the purchasing power of the consumer, and the impact on revenues in Saudi riyals due to the transformation of the surplus from fresh milk to long-life milk. Powered by the discount, coupled with a shrinking consumer base and rising raw material prices, global supply chain challenges mainly represented by increased freight costs.
SADAFCO expected that these challenges will continue in the short term, but taking precautionary measures to control the epidemic situation and the recovery of the economy and travel will contribute to reversing these negative effects.
